In managing your
cashflow, make an exhaustive list of your income and expenditure for the whole
year. Include the debts that you have to service and the money that you have
to give your parents.

Find the value
of Income - Expenditure And Debt and if it is negative, priority goes towards
reducing your debt, and then expenditure.

Do not take on
unneccessary debt. Ensure that you absolutely need to have that debt eg. HDB
flat loan before taking it. And never have credit card debt for it bears huge
interest rates. The only difference from loansharks is that banks do not use
pig heads when collecting your debt.

Take a long term
view of your targets, and from your net positive cash flow, you will be able
to see if it is adequate to meet your targets, eg. pay for MBA course at 30
yrs old, sports car by 35 yrs, own property by 45 yrs old,retire with 1 million
bucks at 62. If not, do see what expenditures you can reduce. Many financial
institutions offer free financial planning advice.

Do also consider
insurance as part of your total financial plan.

Remember to set
aside cash for emergencies, if possible, 6-9 months of your needs. Whatever
is left may be used for investment eg. fixed deposit, bonds, unit trusts, equities,
to get better returns on your cash. Bottomline is, only invest cash that you
absolutely do not need and do the due dilligence required before making any
investment.

In the long-term,
you should see your assets grow and you will be on your way to a comfortable
retirement. Bear in mind when buying 'assets' such as cars that their value
depreciates over time ie. another way to throw cash down the drain.

For more details
refer to book 'Personal Assets and Finance' by Koh Seng Kee, available at NUS
Forum Co-op.